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Servpro Indus. Inc. v. Zerorez of Phx. LLC

Citation: 339 F. Supp. 3d 898Docket: No. CV-17-00862-PHX-ROS

Court: District Court, D. Arizona; September 7, 2018; Federal District Court

Narrative Opinion Summary

This case involves a trademark infringement claim by Servpro Industries Inc. against Zerorez of Phoenix LLC, focusing on the disputed use of the phrase 'Like it Never Happened' in Zerorez's advertisements. Servpro, which has used its registered trademark 'Like it Never Even Happened' since 2003, argued that Zerorez's use of a similar phrase constituted trademark infringement and unfair competition under Arizona law. The court's analysis centered on whether Zerorez's use of the phrase was likely to cause consumer confusion, a requirement under both federal and state law. Key factors considered included the inherent weakness of Servpro's mark, the distinct services offered by both companies, and the similarity of the marks in context. The court found Servpro's mark weak due to its descriptive nature and commonality in the industry. Additionally, the services provided by Servpro and Zerorez were sufficiently distinct, reducing the potential for confusion. The court noted that Zerorez's intent was neutral and that both companies clearly identified their brands in advertising, which further diminished the likelihood of confusion. Consequently, the court granted summary judgment in favor of Zerorez, ruling that Servpro failed to demonstrate that consumer confusion was probable rather than merely possible.

Legal Issues Addressed

Intent and Likelihood of Consumer Confusion

Application: Zerorez's intent was assessed as neutral since there was no clear evidence of prior awareness of Servpro's trademark; this factor did not weigh heavily against Zerorez.

Reasoning: The evaluation of Zerorez's intent in using the phrase 'Like it never happened' indicates no clear evidence that Zerorez was aware of Servpro's trademark prior to its use, although Zerorez learned of it shortly afterward and continued using the phrase.

Marketing Channels and Consumer Care

Application: The standard marketing channels and the elevated degree of consumer care in selecting services reduced the potential for confusion.

Reasoning: The marketing channels used by both Servpro and Zerorez, such as radio, billboards, and the Internet, do not significantly impact the likelihood of confusion since both entities utilized standard channels rather than specialized outlets.

Relatedness of Goods and Services

Application: The distinction in services offered by Servpro and Zerorez, with minimal overlap, was found to reduce the likelihood of consumer confusion.

Reasoning: This distinction suggests that their target consumer bases differ significantly, as those seeking restoration services after disasters are not the same as those looking for basic carpet cleaning.

Similarity of Marks

Application: The similarity in meaning between the marks did not lead to confusion due to their distinct usage in advertising, similar to the ruling in Cohn v. Petsmart.

Reasoning: Although the marks 'Like it never even happened' and 'Like it never happened' are nearly identical in meaning, they are used differently in advertising.

Strength of the Trademark

Application: The court evaluated the strength of Servpro's mark as inherently weak, considering its commonality in the cleaning industry and its usage alongside other identifiers.

Reasoning: Servpro's mark, 'Like it never even happened,' is not generic, arbitrary, or fanciful; it is likely to be classified as either descriptive or suggestive. Both types are inherently weak, and the mark’s commonality in the cleaning context further diminishes its strength as a source identifier.

Trademark Infringement Likelihood of Confusion

Application: The court emphasized that Servpro must prove Zerorez's use of the phrase likely caused consumer confusion to establish trademark infringement.

Reasoning: The court's analysis focuses on Servpro's claim for trademark infringement, emphasizing the necessity for Servpro to demonstrate that Zerorez's use of the phrase was likely to cause consumer confusion.